Announcements
December 14, 2022
Upcoming year-end deadlines
Many of your clients may have important year-end deadlines approaching.
Keep in mind that all requests for account transactions with year-end deadlines must be received by American Funds before the close of the New York Stock Exchange (NYSE) on Friday, December 30, 2022.
Requests received after the close of the New York Stock Exchange (NYSE) will be processed on the next business day — Tuesday, January 3, 2023 — and will be reported in the 2023 tax year.
Key deadlines to review with clients
Required minimum distributions (RMDs) |
Clients who are age 72 (or older) must take their 2022 RMDs by December 31. However, clients who turn 72 in 2022 can delay taking their first RMD until April 1, 2023. Learn more: |
Beneficiary distributions |
Remind your clients who are beneficiaries of an IRA that they may need to take their 2022 distributions by December 31. |
Gift of shares |
For 2022, clients can gift up to $16,000 ($32,000 for married couples) without incurring tax consequences. If you have clients who want to reduce their tax liabilities for 2022, complete the appropriate form(s) and return to American Funds by December 30.
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Other deadlines to keep in mind
Traditional IRAs, Roth IRAs and Coverdell education savings accounts |
Contributions for the 2022 tax year must be made by Tuesday, April 18, 2023. Learn more: |
SIMPLE IRAs |
Establishment. The plan must be established by October 1 of the current calendar year, unless it's a plan for a new business that was established after October 1 of the SIMPLE IRA plan set-up year. Employer contributions. All contributions must be made by the employer’s tax filing deadline (including extensions). Employee contributions. Contributions can begin only after the plan has been established.
SIMPLE IRA |
SEP plans |
Establishment. The plan must be established by the employer’s tax filing deadline (including extensions).
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401(k) plans |
Establishment. Plans can be adopted by the due date of the employer's tax return for that year (including extensions). However, the 401(k) feature of a plan may not be made effective earlier than the adoption date. In other words, the 401(k) feature of a plan cannot be adopted retroactively. Additionally, safe harbor 401(k) plans require an initial plan year at least three months long, making October 1 the deadline for a safe harbor plan with a calendar-based plan year.
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